T.T. LIMITED Vs. SONALI BANK

JUDGEMENT

(1.) THE challenge by means of this Regular First Appeal (RFA) filed under Section 96 of Code of Civil Procedure, 1908 (CPC) is to the impugned judgment of the trial Court dated 11.11.2003 dismissing the suit filed by the appellant/plaintiff for recovery of US Dollars 11,982.82/ - i.e. Rs.5,57,201/ -.

(2.) THE facts of the case are that the appellant/plaintiff is the seller and exporter of cotton yarn. The defendant No.2/respondent No.2 is a buyer in Bangladesh. Defendant No.1/respondent No.1 is a Bank which at the request of defendant No2./respondent No.2 issued four letters of credit in favour of the appellant/plaintiff. The subject suit came to be filed, inasmuch as, there were delays totaling to 648 days in the realization of the amount under the letters of credit, and the appellant/plaintiff claimed that since it had negotiated the letters of credit with its bank -M/s Oriental Bank of Commerce, Overseas Branch, New Delhi and therefore it had to pay interest for the delayed periods totaling to 648 days. The suit was filed claiming interest for the delay in crediting the amounts of letters of credit.

(3.) THE trial Court has dismissed the suit relying on the aforesaid clauses by making the following observations: -